The value of your household dollars is falling due to rising inflation and weak wages growth.
“People’s real wages – that is their wage minus inflation – is lower due to the recent spike in inflation,” Gross says. , according to the Australian Bureau of Statistics. Over the 12 months to the end of September, the CPI rose 3 per cent. The annual CPI rise is due to a change in household spending patterns during lockdowns, Reserve Bank of Australia governor Philip Lowe explains.
However, Matt Grudnoff, senior economist at The Australia Institute, expects supply chain issues to disappear next year, abating overall inflationary pressures. Still, fears are growing that the RBA may need to lift official interest rates to put the brakes on the climbing inflation. If bank interest rates rise to match the hikes, that could result in mortgage stress for many highly indebted homeowners.
Does that also mean inflation is no longer transitory?
No More Lockdowns means the 2 biggest States can get back to earning a living & growing our businesses. When you have a chance to do either or both, without Premiers limiting our daily activity, the economy & wages will grow.
For capitalism this = good economic management.
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